Indians prefer bottled water over carbonated drinks, says research

There is a global trend showing the preference for bottled water over carbonated drinks, and the trend can also be seen in the Indian market. This means that Indian consumers are going off sugary beverages, says a research from Euromonitor.

As per the research, packaged water grew 23-25% in year to March, which was more than twice the rate at which carbonated drinks and sodas grew.

"Globally, cola carbonates has received a lot of negative publicity due to high sugar content and its lack of nutritional value," Euromonitor India Country Manager Janaki Padmanabhan told ET. “The trend is also now evident in India. With increasing health awareness, consumers are looking for something that adds to their nutritional intake."

This year, bottled water sales are expected to bring down soda sales in absolute terms, for the first time in the US. Talking in details, PepsiCo's water business in the US grew by double digits in 2016 Q1, while its carbonated soft-drink volume declined 2% and health concerns is the primary reason for this.

Also read: Coke to launch fizzy drink with fruit juice to help Indian farmers

However, this is not the exact case in India, not in the near future at least. As per industry sources, soda sales stood close to Rs 14,000 crore in the year to 2016, while water was still a Rs 3,000 crore market (excluding bulk packaged water).

However, things are changing, with more people preferring bottled water over soda drinks. One reason behind this could be the quest for clean drinking water, which is not available in tap or municipal water.

Also read: Dabur to launch health drink soon: Hajmola Yoodley

Talking of non-cola carbonates, also known as fruit-based carbonates, they are getting more and more popular with younger consumers. "Thanks to new product development along with new flavours, consumers now (can) accommodate other drinks," said Padmanabhan. "This, along with the move away from carbonates, will result in bottled water and juices benefitting."

Also read: Fruit-based drinks displace Fizzy drinks from top 5 beverage brands in India

Image source